Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CYTK | |
Entity Registrant Name | CYTOKINETICS INC | |
Entity Central Index Key | 0001061983 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 000-50633 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3291317 | |
Entity Address, Address Line One | 280 East Grand Avenue | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 624-3000 | |
Entity Common Stock, Shares Outstanding | 59,081,899 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 39,634 | $ 42,256 |
Short-term investments | 126,405 | 156,475 |
Accounts receivable | 6,576 | 2,231 |
Contract assets | 0 | 4,554 |
Prepaid and other current assets | 3,920 | 2,158 |
Total current assets | 176,535 | 207,674 |
Property and equipment, net | 3,615 | 3,204 |
Other assets | 7,243 | 300 |
Total assets | 187,393 | 211,178 |
Current liabilities: | ||
Accounts payable | 3,412 | 3,764 |
Accrued liabilities | 13,139 | 15,757 |
Current portion of long-term debt | 0 | 2,607 |
Short-term lease liability | 4,577 | 0 |
Other current liabilities | 389 | 66 |
Total current liabilities | 21,517 | 22,194 |
Long-term debt, net | 44,762 | 39,806 |
Liability related to the sale of future royalties, net | 137,726 | 122,473 |
Long-term lease liability | 3,257 | 0 |
Other long-term liabilities | 0 | 771 |
Total liabilities | 207,262 | 185,244 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity (deficit): | ||
Preferred stock, $0.001 par value | 0 | 0 |
Common stock, $0.001 par value | 59 | 55 |
Additional paid-in capital | 813,729 | 768,703 |
Accumulated other comprehensive income | 719 | 500 |
Accumulated deficit | (834,376) | (743,324) |
Total stockholders’ equity (deficit) | (19,869) | 25,934 |
Total liabilities and stockholders’ equity (deficit) | $ 187,393 | $ 211,178 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Common stock, par value | $ 0.001 | $ 0.001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 6,055 | $ 10,641 | $ 21,656 | $ 22,124 |
Operating expenses: | ||||
Research and development | 20,229 | 21,391 | 67,791 | 65,858 |
General and administrative | 9,753 | 7,164 | 29,026 | 23,724 |
Total operating expenses | 29,982 | 28,555 | 96,817 | 89,582 |
Operating loss | (23,927) | (17,914) | (75,161) | (67,458) |
Interest expense | (1,345) | (867) | (3,892) | (2,628) |
Non-cash interest expense on liability related to the sale of future royalties | (5,321) | (4,559) | (15,204) | (13,026) |
Interest and other income | 1,020 | 1,323 | 3,205 | 3,291 |
Net loss | $ (29,573) | $ (22,017) | $ (91,052) | $ (79,821) |
Net loss per share — basic and diluted | $ (0.50) | $ (0.40) | $ (1.60) | $ (1.47) |
Weighted-average shares in net loss per share — basic and diluted | 58,640 | 54,626 | 57,050 | 54,329 |
Other comprehensive income: | ||||
Unrealized gain (loss) on available-for-sale securities, net | $ (42) | $ (3) | $ 219 | $ 104 |
Comprehensive loss | (29,615) | (22,020) | (90,833) | (79,717) |
Research and Development Revenues [Member] | ||||
Revenues: | ||||
Total revenues | 6,055 | 8,726 | 21,656 | 16,991 |
License Revenues [Member] | ||||
Revenues: | ||||
Total revenues | $ 0 | $ 1,915 | $ 0 | $ 5,133 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2017 | $ 109,842 | $ 54 | $ 755,526 | $ 343 | $ (646,081) |
Beginning Balance, shares at Dec. 31, 2017 | 53,960,832 | ||||
Stock-based compensation | 2,403 | $ 0 | 2,403 | 0 | 0 |
Exercise of stock options, value | 342 | $ 0 | 342 | 0 | 0 |
Exercise of stock options, shares | 59,112 | ||||
Vesting of restricted stock units, net of taxes withheld, value | (866) | $ 0 | (866) | 0 | 0 |
Vesting of restricted stock units, net of taxes withheld, shares | 177,602 | ||||
ASC 606 Adoption | ASC 606 [Member] | 18,013 | $ 0 | 0 | 0 | 18,013 |
Other comprehensive income (loss) | 146 | 0 | 0 | 146 | 0 |
Net loss | (30,281) | 0 | 0 | 0 | (30,281) |
Ending Balance at Mar. 31, 2018 | 99,599 | $ 54 | 757,405 | 489 | (658,349) |
Ending Balance, shares at Mar. 31, 2018 | 54,197,546 | ||||
Beginning Balance at Dec. 31, 2017 | 109,842 | $ 54 | 755,526 | 343 | (646,081) |
Beginning Balance, shares at Dec. 31, 2017 | 53,960,832 | ||||
Net loss | (79,821) | ||||
Ending Balance at Sep. 30, 2018 | 52,069 | $ 55 | 765,970 | 447 | (714,403) |
Ending Balance, shares at Sep. 30, 2018 | 54,641,520 | ||||
Beginning Balance at Mar. 31, 2018 | 99,599 | $ 54 | 757,405 | 489 | (658,349) |
Beginning Balance, shares at Mar. 31, 2018 | 54,197,546 | ||||
Stock-based compensation | 2,505 | $ 0 | 2,505 | 0 | 0 |
Exercise of stock options, value | 2,442 | $ 1 | 2,441 | 0 | 0 |
Exercise of stock options, shares | 306,027 | ||||
Vesting of restricted stock units, net of taxes withheld, value | 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock units, net of taxes withheld, shares | 11,831 | ||||
Issuance of common stock under Employee Stock Purchase Plan, value | 536 | $ 0 | 536 | 0 | 0 |
Issuance of common stock under Employee Stock Purchase Plan, shares | 75,992 | ||||
ASC 606 Adoption | ASC 606 [Member] | (2,350) | $ 0 | 0 | 0 | (2,350) |
Other comprehensive income (loss) | (39) | 0 | 0 | (39) | 0 |
Net loss | (27,523) | 0 | 0 | 0 | (27,523) |
Ending Balance at Jun. 30, 2018 | 75,170 | $ 55 | 762,887 | 450 | (688,222) |
Ending Balance, shares at Jun. 30, 2018 | 54,591,396 | ||||
Stock-based compensation | 2,572 | $ 0 | 2,572 | 0 | 0 |
Exercise of stock options, value | 329 | $ 0 | 329 | 0 | 0 |
Exercise of stock options, shares | 50,124 | ||||
Issuance of warrants | 182 | $ 0 | 182 | 0 | 0 |
ASC 606 Adoption | ASC 606 [Member] | (4,164) | 0 | 0 | 0 | (4,164) |
Other comprehensive income (loss) | (3) | 0 | 0 | (3) | 0 |
Net loss | (22,017) | 0 | 0 | 0 | (22,017) |
Ending Balance at Sep. 30, 2018 | 52,069 | $ 55 | 765,970 | 447 | (714,403) |
Ending Balance, shares at Sep. 30, 2018 | 54,641,520 | ||||
Beginning Balance at Dec. 31, 2018 | 25,934 | $ 55 | 768,703 | 500 | (743,324) |
Beginning Balance, shares at Dec. 31, 2018 | 54,717,906 | ||||
Stock-based compensation | 2,282 | $ 0 | 2,282 | 0 | 0 |
Exercise of stock options, value | 31 | $ 0 | 31 | 0 | 0 |
Exercise of stock options, shares | 5,116 | ||||
Vesting of restricted stock units, net of taxes withheld, value | (732) | $ 0 | (732) | 0 | 0 |
Vesting of restricted stock units, net of taxes withheld, shares | 165,347 | ||||
Issuance of common stock under at-the-market offering, net of issuance costs | 5,117 | $ 0 | 5,117 | 0 | 0 |
Issuance of common stock under at-the-market offering, net of issuance costs, shares | 562,811 | ||||
Other comprehensive income (loss) | 106 | $ 0 | 0 | 106 | 0 |
Net loss | (29,366) | 0 | 0 | 0 | (29,366) |
Ending Balance at Mar. 31, 2019 | 3,372 | $ 55 | 775,401 | 606 | (772,690) |
Ending Balance, shares at Mar. 31, 2019 | 55,451,180 | ||||
Beginning Balance at Dec. 31, 2018 | 25,934 | $ 55 | 768,703 | 500 | (743,324) |
Beginning Balance, shares at Dec. 31, 2018 | 54,717,906 | ||||
Net loss | (91,052) | ||||
Ending Balance at Sep. 30, 2019 | (19,869) | $ 59 | 813,729 | 719 | (834,376) |
Ending Balance, shares at Sep. 30, 2019 | 59,081,899 | ||||
Beginning Balance at Mar. 31, 2019 | 3,372 | $ 55 | 775,401 | 606 | (772,690) |
Beginning Balance, shares at Mar. 31, 2019 | 55,451,180 | ||||
Stock-based compensation | 2,819 | $ 0 | 2,819 | 0 | 0 |
Exercise of stock options, value | 441 | $ 0 | 441 | 0 | 0 |
Exercise of stock options, shares | 62,356 | ||||
Issuance of common stock under at-the-market offering, net of issuance costs | 19,697 | $ 3 | 19,694 | 0 | 0 |
Issuance of common stock under at-the-market offering, net of issuance costs, shares | 2,449,984 | ||||
Issuance of common stock under Employee Stock Purchase Plan, value | 548 | $ 0 | 548 | 0 | 0 |
Issuance of common stock under Employee Stock Purchase Plan, shares | 92,975 | ||||
Issuance of warrants | 185 | $ 0 | 185 | 0 | 0 |
Other comprehensive income (loss) | 155 | 0 | 0 | 155 | 0 |
Net loss | (32,113) | 0 | 0 | 0 | (32,113) |
Ending Balance at Jun. 30, 2019 | (4,896) | $ 58 | 799,088 | 761 | (804,803) |
Ending Balance, shares at Jun. 30, 2019 | 58,056,495 | ||||
Stock-based compensation | 2,783 | $ 0 | 2,783 | 0 | 0 |
Exercise of stock options, value | 459 | $ 0 | 459 | 0 | 0 |
Exercise of stock options, shares | 53,350 | ||||
Issuance of common stock under at-the-market offering, net of issuance costs | 11,400 | $ 1 | 11,399 | 0 | 0 |
Issuance of common stock under at-the-market offering, net of issuance costs, shares | 972,054 | ||||
Other comprehensive income (loss) | (42) | $ 0 | 0 | (42) | 0 |
Net loss | (29,573) | 0 | 0 | 0 | (29,573) |
Ending Balance at Sep. 30, 2019 | $ (19,869) | $ 59 | $ 813,729 | $ 719 | $ (834,376) |
Ending Balance, shares at Sep. 30, 2019 | 59,081,899 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (91,052) | $ (79,821) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash interest expense on liability related to sale of future royalties | 15,204 | 13,026 |
Non-cash equity-related expense | 7,884 | 7,480 |
Depreciation of property and equipment | 902 | 1,559 |
Interest receivable and amortization on investments | (1,583) | (1,237) |
Non-cash interest expense related to debt | 807 | 412 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,345) | (8,044) |
Contract assets | 4,554 | 13,537 |
Prepaid and other assets | (1,745) | 2,026 |
Operating lease right-of-use assets | 2,631 | 0 |
Accounts payable | (352) | (3,230) |
Accrued and other liabilities | (1,903) | (2,109) |
Contract liabilities | 0 | (18,750) |
Operating lease liabilities | (2,854) | 0 |
Deferred revenue | 0 | (13,737) |
Net cash used in operating activities | (71,852) | (88,888) |
Cash flows from investing activities: | ||
Purchases of investments | (141,798) | (188,428) |
Sales and maturities of investments | 173,670 | 167,732 |
Purchases of property and equipment | (1,313) | (679) |
Net cash provided by (used in) investing activities | 30,559 | (21,375) |
Cash flows from financing activities: | ||
Issuance of common stock under at the market offering, net of issuance costs | 36,214 | 0 |
Proceeds from stock based award activities, net | 747 | 2,783 |
Net proceeds from long-term debt, net of debt discount and issuance cost | 1,710 | 9,898 |
Net cash provided by financing activities | 38,671 | 12,681 |
Net decrease in cash and cash equivalents | (2,622) | (97,582) |
Cash and cash equivalents, beginning of period | 42,256 | 125,206 |
Cash and cash equivalents, end of period | 39,634 | 27,624 |
Supplemental cash flow disclosure - non-cash investing and financing activity: | ||
Right-of-use assets recognized in exchange for lease obligations | 10,687 | 0 |
Issuance of warrants in connection with long-term debt | $ 185 | $ 0 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Note 1 — Organization and Significant Accounting Policies Cytokinetics, Incorporated (the “Company”, “we” or “our”) was incorporated under the laws of the state of Delaware on August 5, 1997. The Company is a late stage biopharmaceutical company focused on the discovery and development of novel small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. Our financial statements contemplate the conduct of our operations in the normal course of business. We have incurred an accumulated deficit of $834.4 million since inception and there can be no assurance that we will attain profitability. The Company anticipates that it will have operating losses and net cash outflows in future periods. We are subject to risks common to late stage biopharmaceutical companies including, but not limited to, development of new drug candidates, dependence on key personnel, and the ability to obtain additional capital as needed to fund our future plans. Our liquidity will be impaired if sufficient additional capital is not available on terms acceptable to us. To date, we have funded operations primarily through sales of our common stock, contract payments under our collaboration agreements, sale of future royalties, debt financing arrangements, government grants and interest income. Until we achieve profitable operations, we intend to continue to fund operations through payments from strategic collaborations, additional sales of equity securities, grants and debt financings. We have never generated revenues from commercial sales of our drugs and may not have drugs to market for at least several years, if ever. Our success is dependent on our ability to enter into new strategic collaborations and/or raise additional capital and to successfully develop and market one or more of our drug candidates. As a result, we may choose to raise additional capital through equity or debt financings to continue to fund operations in the future. We cannot be certain that sufficient funds will be available from such a financing or through a collaborator when required or on satisfactory terms. Additionally, there can be no assurance that our drug candidates will be accepted in the marketplace or that any future products can be developed or manufactured at an acceptable cost. These factors could have a material adverse effect on our future financial results, financial position and cash flows. Based on the current status of our research and development activities, we believe that our existing cash, cash equivalents and investments will be sufficient to fund cash requirements for at least the next 12 months from the filing date of this Quarterly Report on Form 10-Q. If, at any time, our prospects for financing research and development programs decline, we may decide to reduce research and development expenses by delaying, discontinuing or reducing funding of one or more of our research or development programs. Alternatively, we might raise funds through strategic collaborations, public or private financings or other arrangements. Such funding, if needed, may not be available on favorable terms, or at all. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis of Presentation Our condensed consolidated financial statements include the accounts of Cytokinetics and our wholly-owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements include all adjustments (consisting only of normal recurring adjustments) that management believes are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of results to be expected for the full fiscal year or any future interim period. The balance sheet as of December 31, 2018 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. The financial statements and related disclosures have been prepared with the presumption that users of the interim financial statements have read or have access to the audited financial statements for the preceding fiscal year. Accordingly, these financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, investments, accrued research and development expenses, other long-lived assets, stock-based compensation, operating lease assets and liabilities, and the valuation of deferred tax assets. We base our estimates on our historical experience and also on assumptions that we believe are reasonable; however, actual results could significantly differ from those estimates. Leases We adopted Accounting Standards Update No. 2016-02, Leases (“ASC 842”) on January 1, 2019 using the modified retrospective approach. There was no cumulative-effect adjustment as of January 1, 2019. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance, ASC 840, Lease Accounting. We elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allowed us to carry forward the historical lease classification of those leases in place as of January 1, 2019. We also elected to exclude from our condensed consolidated balance sheets recognition of leases having a term of 12 months or less (short-term leases) and elected to not separate lease components and non-lease components for our long-term facilities lease. In adopting ASC 842, we recognized a right-of-use asset in other assets and a short-term and long-term lease liability on our condensed consolidated balance sheets for our existing facilities lease that expires in 2021 (the “Lease”). The right-of-use asset is based on the liability adjusted for any prepaid or deferred rent. We determined the lease term at the commencement date by considering whether renewal options and termination options are reasonably assured of exercise. In determining the present value of lease payments, we estimated our incremental borrowing rate based on information available when we adopted 842. We evaluated our other contracts and determined that, except for the Lease, none of our contracts contained a lease as defined in ASC 842. The impact on the condensed consolidated balance sheets as of January 1, 2019 of adopting ASC 842 is as follows (in thousands): Balance sheet account description ASC 840 January 1, 2019 ASC 842 January 1, 2019 Impact of adoption Deferred rent classified as accrued liabilities $ (323 ) $ — $ 323 Deferred rent classified as other long-term liabilities (773 ) — 773 Short-term lease liability — (4,460 ) (4,460 ) Long-term lease liability — (6,227 ) (6,227 ) Other assets — 9,591 9,591 We recognize rent expense for the operating lease on a straight-line basis over the lease term in operating expenses on the condensed consolidated statements of operations. Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method. On January 1, 2018, for contracts within the scope of ASC 606, we recognized a contract asset or liability and reduced our accumulated deficit for the effect of adopting ASC 606 and did not revise our prior period financial statements. Pursuant to ASC 606, to recognize revenue from a contract with a customer, we: (i) identify our contracts with our customers; (ii) identify our distinct performance obligations in each contract; (iii) determine the transaction price of each contract; (iv) allocate the transaction price to the performance obligations; and (v) recognize revenue as we satisfy our performance obligations. At contract inception, we assess the goods or services promised within each contract and assess whether each promised good or service is distinct and determine those that are performance obligations. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Collaborative Arrangements We enter into collaborative arrangements with partners that typically include payment to us for one of more of the following: (i) license fees; (ii) milestone payments related to the achievement of developmental, regulatory, or commercial goals; (iii) royalties on net sales of licensed products; and (iv) research and development cost reimbursements. Each of these payments results in collaboration or other revenues. Where a portion of non-refundable up-front fees or other payments received are allocated to continuing performance obligations under the terms of a collaborative arrangement, they are recorded as deferred revenue and recognized as revenue when (or as) the underlying performance obligation is satisfied. As part of the accounting for these arrangements, we must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligations. The stand-alone selling price may include such items as, forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success, to determine the transaction price to allocate to each performance obligation. For our collaboration agreements that include more than one performance obligation, such as a license combined with a commitment to perform research and development services, we make judgments to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. We evaluate our progress each reporting period and, if necessary, adjust the measure of a performance obligation and related revenue recognition. License Fees : If a license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front license fees. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. Milestone : We use judgment to determine whether a milestone is considered probable of being reached. Using the most likely amount method, we include the value of a milestone payment in the consideration for a contract at inception if we then conclude achieving the milestone is more likely than not. Otherwise, we exclude the value of a milestone payment from contract consideration at inception and recognize revenue for a milestone at a later date, when we judge that it is probable the milestone will be achieved. If we conclude it is probable that a significant revenue reversal would not occur, the associated milestone is included in the transaction price. We then allocate the transaction price to each performance obligation on a relative stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration and other revenues and earnings in the period of adjustment. Royalties : For contracts that include sales-based royalties, we recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied. To date, we have not recognized any royalty revenues resulting from contracts. Research and Development Cost Reimbursements : Our arrangement with Astellas Pharma Inc. (“Astellas”) and Amgen Inc. (“Amgen”) include promises of research and development services. We have determined that these services collectively are distinct from the licenses provided to Astellas and Amgen and as such, these promises are accounted for as a separate performance obligation recorded over time. We record revenue for these services as the performance obligations are satisfied, which we estimate using internal development costs incurred. Recent Accounting Pronouncements In November 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”), which make targeted improvements to clarify the interaction between Topic 808, Collaborative Arrangements, and Topic 606, Revenue from Contracts with Customers. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2018-18. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments”. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 2 — Net Loss Per Share We excluded the following from diluted net loss per share because inclusion would have been antidilutive (in thousands): September 30, 2019 September 30, 2018 Options to purchase common stock 7,787 5,451 Warrants to purchase common stock 165 107 Restricted Stock and Performance units 867 562 Shares issuable related to the ESPP 75 28 8,894 6,148 |
Research and Development Arrang
Research and Development Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Research And Development [Abstract] | |
Research and Development Arrangements | Note 3 — Research and Development Arrangements Amgen We and Amgen continue activities related to novel small molecule therapeutics, including omecamtiv mecarbil, that activate cardiac muscle contractility for potential applications in the treatment of heart failure under the collaboration and option agreement between the Company and Amgen, as amended (the “Amgen Agreement”). We recognize research and development revenue for reimbursements from Amgen of both internal costs of certain full-time employee equivalents and other costs related to the Amgen Agreement. Research and development revenue from Amgen of $3.5 million and $10.5 million M E T E O R I C H F We had accounts receivable of $3.5 million from Amgen as of September 30, 2019 and $1.9 million as of December 31, 2018. In 2018, we paid Amgen $18.8 million and completed the exercise of our option under the Amgen Agreement to co-invest $40.0 million in the Phase 3 development program of omecamtiv mecarbil in exchange for a total incremental royalty from Amgen of up to 4% on increasing worldwide sales of omecamtiv mecarbil outside Japan (the “Co-Invest Option”). Under the Amgen Agreement, we are eligible to receive over $300.0 million in additional development milestone payments based on various clinical milestones, including the initiation of certain clinical studies, the submission of an application for marketing authorization for a drug candidate to certain regulatory authorities and the receipt of such approvals. Additionally, we are eligible to receive up to $300.0 million in commercial milestone payments provided certain sales targets are met. Due to the nature of drug development, including the inherent risk of development and approval of drug candidates by regulatory authorities, we cannot estimate if and when these milestone payments could be achieved or become due and, accordingly, we consider the milestone payments to be constrained and exclude the milestone payments from the transaction price. Astellas Cytokinetics and Astellas are parties to the Amended and Restated License and Collaboration Agreement dated December 22, 2014, as amended (the “Astellas Agreement”) focused on the research, development, and commercialization of skeletal muscle activators. We have recognized research and development revenue from Astellas for reimbursements of internal costs of certain full-time employee equivalents, supporting collaborative research and development programs, and of other costs related to those programs. Revenue from Astellas included research and development revenues of $2.5 million and $8.5 million for the three months ended September 30, 2019 and 2018, respectively, and $11.2 million the nine months ended September 30, 2019 and 2018, respectively, and for the three and nine months ended September 30, 2018, respectively In 2014, we and Astellas amended and restated the Astellas Agreement (the “2014 Astellas Amendment”) and expanded the objective of the collaboration to include spinal muscular atrophy (“SMA”) and potentially other neuromuscular indications for reldesemtiv and other fast skeletal muscle troponin activators (“FSTAs”). License revenues in 2018 related to our performance obligations under the 2014 Astellas Amendment. In 2018, we completed all our deliverables for the 2014 Astellas Amendment. In 2016, we and Astellas amended the Astellas Agreement (the “2016 Astellas Amendment”) to expand the collaboration to include the development of reldesemtiv for the potential treatment of amyotrophic lateral sclerosis (“ALS”), as well as the possible development in ALS of other FSTAs previously licensed by us to Astellas, and Astellas paid us a $35.0 million non-refundable upfront amendment fee and an accelerated $15.0 million milestone payment for the initiation of the first Phase 2 clinical trial of reldesemtiv in ALS that was otherwise provided for in the Astellas Agreement, as if such milestone had been achieved upon the execution of the 2016 Astellas Amendment, and committed research and development consideration of $44.2 million, for total consideration of $94.2 million. We allocated the consideration to the license and to the research and development services, and recognized license revenue and research and development revenue using the proportional performance model. Our contract asset from the 2016 Astellas Amendment was $4.6 million as of December 31, 2018. We have completed all of our deliverables for the 2016 Astellas Amendment as of September 30, 2019 and as a result our contract asset balance is zero as of September 30, 2019. We had accounts receivable from Astellas of $3.1 million September 30, 2019 and $0.3 million as of December 31, 2018 Currently under the Astellas Agreement, additional research and early and late state development milestone payments for research and clinical milestones, including the initiation of certain clinical studies, the submission of an application for marketing authorization for a drug candidate to certain regulatory authorities and the commercial launch of collaboration products could total over $600.0 million and includes up to $95.0 million relating to reldesemtiv in non-neuromuscular indications, and over $100.0 million related to reldesemtiv in each of SMA, ALS and other neuromuscular indications. Additionally, $200.0 million in commercial milestones could be received under the Astellas Agreement provided certain sales targets are met. We are eligible to receive up to $2.0 million in research milestone payments under the collaboration for each future potential drug candidate. We are currently in discussions with Astellas regarding amending the terms of our collaboration agreement that may lead to the reduction of payments for such research, clinical and commercial milestones. Due to the nature of drug development, including the inherent risk of development and approval of drug candidates by regulatory authorities, it is not possible to estimate if and when these milestone payments could be achieved or become due, and accordingly, are constrained and not included in the transaction price. Subsequent to September 30, 2019, Cytokinetics and Astellas have agreed in principle to revise the terms of the collaboration to provide that Cytokinetics will obtain exclusive control over the development and commercialization of FSTAs, including reldesemtiv and CK-3762601. We expect to enter into definitive agreements with Astellas regarding the above agreement in principle but until we do so, the Astellas Agreement remains in effect in accordance with its current terms, the agreement in principle remains non-binding, and there can be no assurance we will enter into definitive agreements with Astellas regarding any revised terms. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Cash Equivalents and Investments | Note 4 — Cash Equivalents and Investments The amortized cost, unrealized gains, unrealized losses and fair value of cash equivalents and available for sale investments as of September 30, 2019 and December 31, 2018 were as follows (in thousands): September 30, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 33,839 $ — $ — $ 33,839 U.S. Treasury securities 56,092 73 — 56,165 Agency bonds 43,279 35 (1 ) 43,313 Commercial paper 9,935 4 (2 ) 9,937 Corporate obligations 16,245 37 — 16,282 $ 159,390 $ 149 $ (3 ) $ 159,536 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 34,771 $ — $ — $ 34,771 U.S. Treasury securities 56,999 — (41 ) 56,958 Agency bonds 61,792 1 (14 ) 61,779 Commercial paper 19,448 — (13 ) 19,435 Corporate obligations 17,644 2 (8 ) 17,638 $ 190,654 $ 3 $ (76 ) $ 190,581 Investments available for sale as of September 30, 2019 excludes an investment in equity of $0.7 million included in short-term investments. As of September 30, 2019, there were no investments that had been in a continuous unrealized loss position for 12 months or longer. Interest income was $1.0 million and $3.2 million for the three and nine months ended September 30, 2019 and $1.3 million and $3.3 million for the three and nine months ended September 30, 2018. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 — Fair Value Measurements We value our financial assets and liabilities at fair value, defined as the price that would be received for assets when sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that we believe market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavors to utilize the best information reasonably available. Accordingly, we use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and consider the security issuers’ and the third-party issuers’ credit risk in our assessment of fair value. We classify fair value based on the observability of those inputs using a hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement): Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or through corroboration with observable market data; and Level 3 — Unobservable inputs, for which there is little or no market data for the assets or liabilities, such as internally-developed valuation models. Fair value of financial assets: Using this hierarchy, we classify our financial assets at fair value as follows (in thousands): September 30, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets At Fair Value Assets: Money market funds $ 33,839 $ — $ — $ 33,839 U.S. Treasury securities 56,165 — — 56,165 Agency bonds — 43,313 — 43,313 Commercial paper — 9,937 — 9,937 Corporate obligations — 16,282 — 16,282 $ 90,004 $ 69,532 $ — $ 159,536 December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets At Fair Value Assets: Money market funds $ 34,771 $ — $ — $ 34,771 U.S. Treasury securities 56,958 — — 56,958 Agency bonds — 61,779 — 61,779 Commercial paper — 19,435 — 19,435 Corporate obligations — 17,638 — 17,638 $ 91,729 $ 98,852 $ — $ 190,581 The carrying amount of our accounts receivable and accounts payable approximates fair value due to the short-term nature of these instruments. Fair value of financial liabilities: As of September 30, 2019 and December 31, 2018, the fair value of the long-term debt approximated its carrying value of $44.8 million and $42.4 million, respectively, because it is carried at a market observable interest rate, which is considered Level 2. As of September 30, 2019, the fair value of liability related to the sale of future royalties is based on approximate carrying value and our current estimates of future royalties is expected to be paid to RPI Finance Trust (“RPI”), an entity related to Royalty Pharma, over the life of the arrangement, which is considered Level 3 (See Note 9 – “Liability Related to Sale of Future Royalties”). There were no |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | Note 6 — Balance Sheet Components Accrued liabilities were as follows (in thousands): September 30, 2019 December 31, 2018 Accrued liabilities: Research and development services $ 5,322 $ 8,618 Compensation related 6,673 6,118 Other accrued expenses 1,144 1,021 Total accrued liabilities $ 13,139 $ 15,757 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 7 — Leases The Lease for our existing facilities expires in 2021 and includes rental payments on a graduated scale and payment of certain operating expenses. As of September 30, 2019, the remaining lease term is 1.8 years, the discount rate used to determine the operating lease liability was 9%. In July 2019, we amended the lease agreement in connection with our leasing of additional premises within the same office location (the “Expansion Lease”) for 9,530 square feet of an office space. The Expansion Lease has an initial term of 39 months, and is expected to commence in January 2020. The total commitment of undiscounted lease payments for the Expansion Lease was $1.3 million as at September 30, 2019. In July 2019, we entered into a lease agreement for approximately 234,892 square feet of office and laboratory space at a facility being located in South San Francisco, California (the “Oyster Point Lease”). The lease has an initial term of twelve years, and is expected to commence in September 2021. We have two consecutive five-year options to extend the lease. Subject to rent abatement for the first two months of the lease, we will be required to pay $5.45 per square foot for 159,891 square feet for the first twelve months of the lease term, which will increase at a rate of 3.5% per year. After the first twelve months of the lease, rent will be payable on the entire leased square footage. A refundable security deposit of $5.1 million is also required as part of the lease. We will be required to pay fifty percent of the security deposit amount by January 1, 2020 and the remaining fifty percent as of January 2021. The landlord will provide a tenant improvement allowance of $34.1 million for costs relating to the initial design and construction of the improvements. We will pay certain operating costs of the facility and have certain rights to sublease under the agreement. The Company has not recognized a right-of-use asset or aggregate lease liability as of September 30, 2019 for the Expansion Lease and Oyster Point Lease as the underlying assets were unavailable for use by the Company at any time in the period ended September 30, 2019. The undiscounted future non- cancellable lease payments under the lease agreements as of September 30, 2019 is as follows (in thousands): Years ending December 31: 2019 remainder $ 1,191 2020 5,240 2021 4,616 2022 12,694 Thereafter 203,762 Total undiscounted future lease payments 227,503 Less: Undiscounted lease payments related to Expansion Lease (1,335 ) Less: Undiscounted lease payments related to Oyster Point Lease (217,667 ) Less: Present value adjustments (667 ) Total lease liability $ 7,834 Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2019 was $3.5 million Rent expense was $1.3 million for the three months ended September 30, 2019 and 2018 and $3.8 million for the nine months ended September 30, 2019 and 2018. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8 — Long-Term Debt Prior to May 17, 2019 we maintained a loan and security agreement dated as of October 19, 2015, as amended (the “Original Loan Agreement”) with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”) (Oxford and SVB, collectively the “Lenders”) to fund our working capital and other general corporate needs. The Term Loan was accounted for as a debt modification in a non-troubled debt restructuring, rather than a debt extinguishment, based on a comparison of the present value of the cash flows under the terms of the debt immediately before and after the effective date of the Term Loan, which resulted in a change of less than 10%. As a result, issuance costs paid to the lender in connection with the Term Loan were recorded as a reduction of the carrying amount of the debt liability and were not significant. Unamortized issuance costs as of the date of the modification were amortized to interest expense over the repayment term of Term Loan. Both borrowings under the Original Loan Agreement and Term Loan bear interest at an annual rate equal to the greater of (a) 8.05% or (b) the sum of 6.81% plus the 30-day U.S. LIBOR rate. The borrowing under the Original Loan Agreement was repayable in monthly interest-only payments through November 2019 followed by 35 months of monthly payments of interest and principal. The borrowing under the Term Loan is repayable in monthly interest-only payments through December 31, 2020. The interest only period may be extended for six or twelve months if both of the following milestones occur: (i) specified events related to the development of (a) reldesemtiv, a novel fast skeletal muscle troponin activator, in spinal muscular atrophy or amyotrophic lateral sclerosis, or (b) CK-3773274, a novel cardiac myosin inhibitor, in cardiomyopathy; and/or (ii) specified results from GALACTIC-HF, a Phase 3 trial of omecamtiv mecarbil, a novel cardiac myosin activator. The ultimate interest-only period will be followed by equal monthly payments of principal and interest to the maturity date in December 2023 We are required to make a final payment upon loan maturity of 6.00% of the notes payable, which we accrete over the life of the Term Loan. Our obligations under the New Loan Agreement are secured by substantially all our current and future assets, other than our intellectual property. Interest expense was $1.3 million and $0.9 million for the three months ended September 30, 2019 and 2018, respectively and $2.6 million for the nine months ended September 30, 2019 and 2018, respectively. As of , the interest rate applicable to borrowings under the Term Loan was 8.83% The New Loan Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to us and includes customary events of default, including but not limited to the nonpayment of principal or interest, violations of covenants and material adverse changes. Upon an event of default, the Lenders may, among other things, accelerate the loans and foreclose on the collateral. Our obligations under the New Loan Agreement are secured by substantially all our current and future assets, other than our intellectual property. If the Term Loan becomes subject to mandatory prepayment under these provisions, we are subject to certain prepayment premiums of 3.00% in the first year, 2.00% in the second year and 1.00% in the third year and thereafter. We determined that these contingent prepayment provisions were an embedded component that qualified as a derivative which should be bifurcated from the Term Loan and accounted for separately from the host contract. As of September 30, 2019, the fair value of this embedded derivative was immaterial. Future minimum payments under the New Loan Agreement are (in thousands): Years ending December 31: 2019 remainder $ 1,004 2020 4,038 2021 18,411 2022 17,068 Thereafter 20,312 Future minimum payments 60,833 Less: Interest and final payment (15,833 ) Notes payable, gross $ 45,000 |
Liability Related to Sale of Fu
Liability Related to Sale of Future Royalties | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Revenue Disclosure [Abstract] | |
Liability Related to Sale of Future Royalties | Note 9 — Liability Related to Sale of Future Royalties In February 2017, we entered into a Royalty Purchase Agreement (the “Royalty Agreement”), under which we sold a portion of our right to receive royalties on potential net sales of omecamtiv mecarbil (and potentially other compounds with the same mechanism of action) under the Amgen Agreement to RPI for a payment of $90.0 million (the “Royalty Monetization”). The Royalty Monetization is non-refundable, even if omecamtiv mecarbil is never commercialized. We recognized $5.3 million and $4.6 million in non-cash interest expense in the three months ended September 30, 2019 and 2018, respectively, and $15.2 million and $13.0 million in non-cash interest expense in the nine months ended September 30, 2019 and 2018, |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 10 — Stockholders’ Equity Committed Equity Offering In 2019, we and Cantor Fitzgerald & Co. entered into a Committed Equity Offering SM Warrants During the second quarter of 2019, in connection with the Term Loan agreement further described in Note 8, we issued a warrant with an exercise price of $9.76 per share to purchase 23,065 shares of our common stock. The warrant was fully exercisable and expires in May 2029. The $0.2 million fair value of the warrant related to the new Term Loan was recorded as a debt discount and is being amortized to interest expense over the term of the debt, in addition to the remaining unamortized discounts related to the Original Loan. As of September 30, 2019, we had outstanding warrants issued pursuant to the Original and New Loan Agreement with a weighted average exercise price of $7.25 per share to purchase 165,424 shares of our common stock. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — Commitments and Contingencies In the ordinary course of business, we may provide indemnifications of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by or on behalf of us, or from intellectual property infringement claims made by third parties. In addition, we have indemnification agreements with our directors and certain of our officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and certain of our officers and employees, and former officers and directors in certain circumstances. We maintain product liability insurance and comprehensive general liability insurance, which may cover certain liabilities arising from our indemnification obligations. It is not possible to determine the maximum potential amount of exposure under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular indemnification obligation. Such indemnification obligations may not be subject to maximum loss clauses. We are not currently aware of any matters that could have a material adverse effect on our financial position, results of operations or cash flows. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements include the accounts of Cytokinetics and our wholly-owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements include all adjustments (consisting only of normal recurring adjustments) that management believes are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of results to be expected for the full fiscal year or any future interim period. The balance sheet as of December 31, 2018 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. The financial statements and related disclosures have been prepared with the presumption that users of the interim financial statements have read or have access to the audited financial statements for the preceding fiscal year. Accordingly, these financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, investments, accrued research and development expenses, other long-lived assets, stock-based compensation, operating lease assets and liabilities, and the valuation of deferred tax assets. We base our estimates on our historical experience and also on assumptions that we believe are reasonable; however, actual results could significantly differ from those estimates. |
Leases | Leases We adopted Accounting Standards Update No. 2016-02, Leases (“ASC 842”) on January 1, 2019 using the modified retrospective approach. There was no cumulative-effect adjustment as of January 1, 2019. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance, ASC 840, Lease Accounting. We elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allowed us to carry forward the historical lease classification of those leases in place as of January 1, 2019. We also elected to exclude from our condensed consolidated balance sheets recognition of leases having a term of 12 months or less (short-term leases) and elected to not separate lease components and non-lease components for our long-term facilities lease. In adopting ASC 842, we recognized a right-of-use asset in other assets and a short-term and long-term lease liability on our condensed consolidated balance sheets for our existing facilities lease that expires in 2021 (the “Lease”). The right-of-use asset is based on the liability adjusted for any prepaid or deferred rent. We determined the lease term at the commencement date by considering whether renewal options and termination options are reasonably assured of exercise. In determining the present value of lease payments, we estimated our incremental borrowing rate based on information available when we adopted 842. We evaluated our other contracts and determined that, except for the Lease, none of our contracts contained a lease as defined in ASC 842. The impact on the condensed consolidated balance sheets as of January 1, 2019 of adopting ASC 842 is as follows (in thousands): Balance sheet account description ASC 840 January 1, 2019 ASC 842 January 1, 2019 Impact of adoption Deferred rent classified as accrued liabilities $ (323 ) $ — $ 323 Deferred rent classified as other long-term liabilities (773 ) — 773 Short-term lease liability — (4,460 ) (4,460 ) Long-term lease liability — (6,227 ) (6,227 ) Other assets — 9,591 9,591 We recognize rent expense for the operating lease on a straight-line basis over the lease term in operating expenses on the condensed consolidated statements of operations. |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method. On January 1, 2018, for contracts within the scope of ASC 606, we recognized a contract asset or liability and reduced our accumulated deficit for the effect of adopting ASC 606 and did not revise our prior period financial statements. Pursuant to ASC 606, to recognize revenue from a contract with a customer, we: (i) identify our contracts with our customers; (ii) identify our distinct performance obligations in each contract; (iii) determine the transaction price of each contract; (iv) allocate the transaction price to the performance obligations; and (v) recognize revenue as we satisfy our performance obligations. At contract inception, we assess the goods or services promised within each contract and assess whether each promised good or service is distinct and determine those that are performance obligations. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Collaborative Arrangements We enter into collaborative arrangements with partners that typically include payment to us for one of more of the following: (i) license fees; (ii) milestone payments related to the achievement of developmental, regulatory, or commercial goals; (iii) royalties on net sales of licensed products; and (iv) research and development cost reimbursements. Each of these payments results in collaboration or other revenues. Where a portion of non-refundable up-front fees or other payments received are allocated to continuing performance obligations under the terms of a collaborative arrangement, they are recorded as deferred revenue and recognized as revenue when (or as) the underlying performance obligation is satisfied. As part of the accounting for these arrangements, we must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligations. The stand-alone selling price may include such items as, forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success, to determine the transaction price to allocate to each performance obligation. For our collaboration agreements that include more than one performance obligation, such as a license combined with a commitment to perform research and development services, we make judgments to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. We evaluate our progress each reporting period and, if necessary, adjust the measure of a performance obligation and related revenue recognition. License Fees : If a license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front license fees. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. Milestone : We use judgment to determine whether a milestone is considered probable of being reached. Using the most likely amount method, we include the value of a milestone payment in the consideration for a contract at inception if we then conclude achieving the milestone is more likely than not. Otherwise, we exclude the value of a milestone payment from contract consideration at inception and recognize revenue for a milestone at a later date, when we judge that it is probable the milestone will be achieved. If we conclude it is probable that a significant revenue reversal would not occur, the associated milestone is included in the transaction price. We then allocate the transaction price to each performance obligation on a relative stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration and other revenues and earnings in the period of adjustment. Royalties : For contracts that include sales-based royalties, we recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied. To date, we have not recognized any royalty revenues resulting from contracts. Research and Development Cost Reimbursements : Our arrangement with Astellas Pharma Inc. (“Astellas”) and Amgen Inc. (“Amgen”) include promises of research and development services. We have determined that these services collectively are distinct from the licenses provided to Astellas and Amgen and as such, these promises are accounted for as a separate performance obligation recorded over time. We record revenue for these services as the performance obligations are satisfied, which we estimate using internal development costs incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”), which make targeted improvements to clarify the interaction between Topic 808, Collaborative Arrangements, and Topic 606, Revenue from Contracts with Customers. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2018-18. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments”. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Impact on Condensed Consolidated Balance Sheets | The impact on the condensed consolidated balance sheets as of January 1, 2019 of adopting ASC 842 is as follows (in thousands): Balance sheet account description ASC 840 January 1, 2019 ASC 842 January 1, 2019 Impact of adoption Deferred rent classified as accrued liabilities $ (323 ) $ — $ 323 Deferred rent classified as other long-term liabilities (773 ) — 773 Short-term lease liability — (4,460 ) (4,460 ) Long-term lease liability — (6,227 ) (6,227 ) Other assets — 9,591 9,591 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Instruments Excluded from Diluted Net Loss Per Share | We excluded the following from diluted net loss per share because inclusion would have been antidilutive (in thousands): September 30, 2019 September 30, 2018 Options to purchase common stock 7,787 5,451 Warrants to purchase common stock 165 107 Restricted Stock and Performance units 867 562 Shares issuable related to the ESPP 75 28 8,894 6,148 |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost, Unrealized Gains, Unrealized Losses and Fair Value of Cash Equivalents and Available for Sale Investments | The amortized cost, unrealized gains, unrealized losses and fair value of cash equivalents and available for sale investments as of September 30, 2019 and December 31, 2018 were as follows (in thousands): September 30, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 33,839 $ — $ — $ 33,839 U.S. Treasury securities 56,092 73 — 56,165 Agency bonds 43,279 35 (1 ) 43,313 Commercial paper 9,935 4 (2 ) 9,937 Corporate obligations 16,245 37 — 16,282 $ 159,390 $ 149 $ (3 ) $ 159,536 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 34,771 $ — $ — $ 34,771 U.S. Treasury securities 56,999 — (41 ) 56,958 Agency bonds 61,792 1 (14 ) 61,779 Commercial paper 19,448 — (13 ) 19,435 Corporate obligations 17,644 2 (8 ) 17,638 $ 190,654 $ 3 $ (76 ) $ 190,581 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets at Fair Value | Using this hierarchy, we classify our financial assets at fair value as follows (in thousands): September 30, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets At Fair Value Assets: Money market funds $ 33,839 $ — $ — $ 33,839 U.S. Treasury securities 56,165 — — 56,165 Agency bonds — 43,313 — 43,313 Commercial paper — 9,937 — 9,937 Corporate obligations — 16,282 — 16,282 $ 90,004 $ 69,532 $ — $ 159,536 December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets At Fair Value Assets: Money market funds $ 34,771 $ — $ — $ 34,771 U.S. Treasury securities 56,958 — — 56,958 Agency bonds — 61,779 — 61,779 Commercial paper — 19,435 — 19,435 Corporate obligations — 17,638 — 17,638 $ 91,729 $ 98,852 $ — $ 190,581 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities were as follows (in thousands): September 30, 2019 December 31, 2018 Accrued liabilities: Research and development services $ 5,322 $ 8,618 Compensation related 6,673 6,118 Other accrued expenses 1,144 1,021 Total accrued liabilities $ 13,139 $ 15,757 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Undiscounted Future Non-cancellable Lease Payments under the Lease Agreements | Years ending December 31: 2019 remainder $ 1,191 2020 5,240 2021 4,616 2022 12,694 Thereafter 203,762 Total undiscounted future lease payments 227,503 Less: Undiscounted lease payments related to Expansion Lease (1,335 ) Less: Undiscounted lease payments related to Oyster Point Lease (217,667 ) Less: Present value adjustments (667 ) Total lease liability $ 7,834 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Payments under New Loan Agreement | Future minimum payments under the New Loan Agreement are (in thousands): Years ending December 31: 2019 remainder $ 1,004 2020 4,038 2021 18,411 2022 17,068 Thereafter 20,312 Future minimum payments 60,833 Less: Interest and final payment (15,833 ) Notes payable, gross $ 45,000 |
Organization and Significant _4
Organization and Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)Obligation | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Accumulated deficit incurred | $ | $ (834,376) | $ (743,324) |
Cash requirements term | 12 months | |
Lease, practical expedients, package | true | |
Lease expiration year | 2021 | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of performance obligation | Obligation | 1 |
Organization and Significant _5
Organization and Significant Accounting Policies - Summary of Impact on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Line Items] | |||
Short-term lease liability | $ (4,577) | $ 0 | |
Long-term lease liability | (3,257) | 0 | |
Other assets | $ 7,243 | $ 300 | |
ASC 840 [Member] | |||
Leases [Line Items] | |||
Deferred rent classified as accrued liabilities | $ (323) | ||
Deferred rent classified as other long-term liabilities | (773) | ||
Short-term lease liability | 0 | ||
Long-term lease liability | 0 | ||
Other assets | 0 | ||
ASC 842 [Member] | |||
Leases [Line Items] | |||
Deferred rent classified as accrued liabilities | 0 | ||
Deferred rent classified as other long-term liabilities | 0 | ||
Short-term lease liability | (4,460) | ||
Long-term lease liability | (6,227) | ||
Other assets | 9,591 | ||
Impact of Adoption [Member] | |||
Leases [Line Items] | |||
Deferred rent classified as accrued liabilities | 323 | ||
Deferred rent classified as other long-term liabilities | 773 | ||
Short-term lease liability | (4,460) | ||
Long-term lease liability | (6,227) | ||
Other assets | $ 9,591 |
Net Loss Per Share - Instrument
Net Loss Per Share - Instruments Excluded from Diluted Net Loss Per Share (Detail) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 8,894 | 6,148 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 7,787 | 5,451 |
Warrants to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 165 | 107 |
Restricted Stock and Performance Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 867 | 562 |
ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 75 | 28 |
Research and Development Arra_2
Research and Development Arrangements - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2016 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Revenue | $ 6,055,000 | $ 10,641,000 | $ 21,656,000 | $ 22,124,000 | ||
Accounts receivable | 6,576,000 | 6,576,000 | $ 2,231,000 | |||
Contract assets | 0 | 0 | 4,554,000 | |||
2016 Astellas Amendment [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Accounts receivable | 3,100,000 | 3,100,000 | 300,000 | |||
Contract assets | 0 | 0 | 4,600,000 | |||
Amgen [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Pre-commercialization milestone payments eligible to receive | 300,000,000 | 300,000,000 | ||||
Maximum [Member] | 2016 Astellas Amendment [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Research milestone payments | 2,000,000 | |||||
Maximum [Member] | 2016 Astellas Amendment [Member] | Commercial Milestones [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Potential amount receivable under collaboration agreement | 200,000,000 | |||||
Maximum [Member] | Amgen [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Commercialization milestone payments eligible to receive | 300,000,000 | 300,000,000 | ||||
Research and Development Revenues [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Revenue | 6,055,000 | 8,726,000 | 21,656,000 | 16,991,000 | ||
License Revenues [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Revenue | 0 | 1,915,000 | 0 | 5,133,000 | ||
Amgen [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Accounts receivable | 3,500,000 | 3,500,000 | 1,900,000 | |||
Co-invest option exercised amount | $ 40,000,000 | |||||
Percentage of incremental royalty receivable on annual net sales | 4.00% | |||||
Co-invest option payment | $ 18,800,000 | |||||
Amgen [Member] | Research and Development Revenues [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Revenue | 3,500,000 | 10,500,000 | 0 | |||
Astellas [Member] | 2016 Astellas Amendment [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Revenue recognition, Non-refundable upfront amendment fee | $ 35,000,000 | |||||
Amount received as milestone payment | 15,000,000 | |||||
Revenue recognition over performance period | 44,200,000 | |||||
Allocated consideration | $ 94,200,000 | |||||
Astellas [Member] | Maximum [Member] | 2016 Astellas Amendment [Member] | Non Neuromuscular Indications | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Potential amount receivable under collaboration agreement | 95,000,000 | |||||
Astellas [Member] | Minimum [Member] | 2016 Astellas Amendment [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Potential amount receivable under collaboration agreement | 600,000,000 | |||||
Astellas [Member] | Minimum [Member] | 2016 Astellas Amendment [Member] | SMA and Other Neuromuscular Indications [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Potential amount receivable under collaboration agreement | 100,000,000 | |||||
Astellas [Member] | Research and Development Revenues [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Revenue | 2,500,000 | 8,500,000 | 11,200,000 | 16,800,000 | ||
Astellas [Member] | License Revenues [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Revenue | $ 0 | $ 1,900,000 | $ 0 | $ 5,100,000 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments - Amortized Cost, Unrealized Gains, Unrealized Losses and Fair Value of Cash Equivalents and Available for Sale Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | $ 39,634 | $ 42,256 |
Amortized Cost | 159,390 | 190,654 |
Unrealized Gains | 149 | 3 |
Unrealized Losses | (3) | (76) |
Fair Value | 159,536 | 190,581 |
Money Market Funds [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 33,839 | 34,771 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 33,839 | 34,771 |
U.S. Treasury Securities [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 56,092 | 56,999 |
Unrealized Gains | 73 | 0 |
Unrealized Losses | 0 | (41) |
Fair Value | 56,165 | 56,958 |
Agency Bonds [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 43,279 | 61,792 |
Unrealized Gains | 35 | 1 |
Unrealized Losses | (1) | (14) |
Fair Value | 43,313 | 61,779 |
Commercial Paper [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 9,935 | 19,448 |
Unrealized Gains | 4 | 0 |
Unrealized Losses | (2) | (13) |
Fair Value | 9,937 | 19,435 |
Corporate Obligations [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 16,245 | 17,644 |
Unrealized Gains | 37 | 2 |
Unrealized Losses | 0 | (8) |
Fair Value | $ 16,282 | $ 17,638 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | ||||
Available for sale, investment in equity | $ 700,000 | $ 700,000 | ||
Investments in continuous unrealized loss position for 12 months or longer | 0 | 0 | ||
Interest income | $ 1,000,000 | $ 1,300,000 | $ 3,200,000 | $ 3,300,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets at Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | $ 159,536 | $ 190,581 |
Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 90,004 | 91,729 |
Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 69,532 | 98,852 |
Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 33,839 | 34,771 |
Money Market Funds [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 33,839 | 34,771 |
Money Market Funds [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Money Market Funds [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
U.S. Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 56,165 | 56,958 |
U.S. Treasury Securities [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 56,165 | 56,958 |
U.S. Treasury Securities [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
U.S. Treasury Securities [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Agency Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 43,313 | 61,779 |
Agency Bonds [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Agency Bonds [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 43,313 | 61,779 |
Agency Bonds [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Commercial Paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 9,937 | 19,435 |
Commercial Paper [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Commercial Paper [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 9,937 | 19,435 |
Commercial Paper [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Corporate Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 16,282 | 17,638 |
Corporate Obligations [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Corporate Obligations [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 16,282 | 17,638 |
Corporate Obligations [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 44,800,000 | $ 42,400,000 |
Fair value of liabilities transferred from level 1 to level 2 | 0 | |
Fair value of liabilities transferred from level 2 to level 1 | 0 | |
Fair value of liabilities transferred into level 3 | 0 | |
Fair value of liabilities transferred from level 3 | $ 0 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accrued liabilities: | ||
Research and development services | $ 5,322 | $ 8,618 |
Compensation related | 6,673 | 6,118 |
Other accrued expenses | 1,144 | 1,021 |
Total accrued liabilities | $ 13,139 | $ 15,757 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | Jan. 01, 2021 | Jan. 01, 2020 | Jul. 31, 2019USD ($)ft²USD_per_sqft | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Lessee Lease Description [Line Items] | |||||||
Lease expiration year | 2021 | ||||||
Weighted average remaining lease term | 1 year 9 months 18 days | 1 year 9 months 18 days | |||||
Weighted average discount rate | 9.00% | 9.00% | |||||
Undiscounted lease payments | $ 1,335 | $ 1,335 | |||||
Undiscounted lease payments | 217,667 | 217,667 | |||||
Cash paid included in net cash used in operating activities | 3,500 | ||||||
Rent expense | 1,300 | $ 1,300 | 3,800 | $ 3,800 | |||
Expansion Lease [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Area of land under lease agreement | ft² | 9,530 | ||||||
Initial lease term | 39 months | ||||||
Operating lease commencement period | 2020-01 | ||||||
Undiscounted lease payments | 1,300 | 1,300 | |||||
Oyster Point Lease [Member] | California [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Area of land under lease agreement | ft² | 234,892 | ||||||
Initial lease term | 12 years | ||||||
Operating lease commencement period | 2021-09 | ||||||
Operating lease, term description | We have two consecutive five-year options to extend the lease. Subject to rent abatement for the first two months of the lease, we will be required to pay $5.45 per square foot for 159,891 square feet for the first twelve months of the lease term, which will increase at a rate of 3.5% per year. After the first twelve months of the lease, rent will be payable on the entire leased square footage. | ||||||
Rent payment required to be pay for lease per square foot | USD_per_sqft | 5.45 | ||||||
Area of land | ft² | 159,891 | ||||||
Increase in operating lease rate annual payment | 3.50% | ||||||
Refundable lease security deposit | $ 5,100 | ||||||
Lease agreement allowances for tenant improvements | $ 34,100 | ||||||
Undiscounted lease payments | $ 217,700 | $ 217,700 | |||||
Oyster Point Lease [Member] | California [Member] | Forecast [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Percentage of lease security deposit | 50.00% | 50.00% |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Future Non-cancellable Lease Payments under the Lease Agreements (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 remainder | $ 1,191 |
2020 | 5,240 |
2021 | 4,616 |
2022 | 12,694 |
Thereafter | 203,762 |
Total undiscounted future lease payments | 227,503 |
Less: Undiscounted lease payments related to Expansion Lease | (1,335) |
Less: Undiscounted lease payments related to Oyster Point Lease | (217,667) |
Less: Present value adjustments | (667) |
Total lease liability | $ 7,834 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Installment | Sep. 30, 2018USD ($) | May 17, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Interest expense | $ 1,345 | $ 867 | $ 3,892 | $ 2,628 | |
Oxford and Silicon Valley Bank [Member] | New Loan and Security Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of original loan | $ 42,000 | ||||
Oxford and Silicon Valley Bank [Member] | 2019 Term Loan [Member] | New Loan and Security Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of original loan | $ 45,000 | ||||
Loan repayment terms | The borrowing under the Term Loan is repayable in monthly interest-only payments through December 31, 2020. The interest only period may be extended for six or twelve months if both of the following milestones occur: (i) specified events related to the development of (a) reldesemtiv, a novel fast skeletal muscle troponin activator, in spinal muscular atrophy or amyotrophic lateral sclerosis, or (b) CK-3773274, a novel cardiac myosin inhibitor, in cardiomyopathy; and/or (ii) specified results from GALACTIC-HF, a Phase 3 trial of omecamtiv mecarbil, a novel cardiac myosin activator. The ultimate interest-only period will be followed by equal monthly payments of principal and interest to the maturity date in December 2023 | ||||
Final payment fee percentage | 6.00% | ||||
Interest expense | $ 1,300 | $ 900 | $ 3,900 | $ 2,600 | |
Stated interest rate on the amounts borrowed under the Agreement | 8.83% | 8.83% | |||
Prepayment fee percentage in fiscal year | 3.00% | ||||
Prepayment fee percentage in year two | 2.00% | ||||
Prepayment fee percentage in year three | 1.00% | ||||
Oxford and Silicon Valley Bank [Member] | 2019 Term Loan [Member] | Amended Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan repayment terms | The borrowing under the Original Loan Agreement was repayable in monthly interest-only payments through November 2019 followed by 35 months of monthly payments of interest and principal | ||||
Number of instalments description | 35 months of monthly payments of interest and principal | ||||
Number of instalments | Installment | 35 | ||||
Debt instrument, applicable interest rate for scenario 1 | 8.05% | 8.05% | |||
Debt instrument, base interest rate for scenario 2 | 6.81% | 6.81% | |||
Interest rate description | Both borrowings under the Original Loan Agreement and Term Loan bear interest at an annual rate equal to the greater of (a) 8.05% or (b) the sum of 6.81% plus the 30-day U.S. LIBOR rate. |
Long-Term Debt - Schedule of Fu
Long-Term Debt - Schedule of Future Minimum Payments under New Loan Agreement (Detail) - New Loan and Security Agreement [Member] - Oxford and Silicon Valley Bank [Member] $ in Thousands | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
2019 remainder | $ 1,004 |
2020 | 4,038 |
2021 | 18,411 |
2022 | 17,068 |
Thereafter | 20,312 |
Future minimum payments | 60,833 |
Long-term debt, alternative | |
Future minimum payments | 60,833 |
Less: Interest and final payment | (15,833) |
Notes payable, gross | $ 45,000 |
Liability Related to Sale of _2
Liability Related to Sale of Future Royalties - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Liability Related to Sale of Future Royalties [Line Items] | |||||
Non-cash interest expense recognized | $ 15,204 | $ 13,026 | |||
Royalty Purchase Agreement [Member] | |||||
Liability Related to Sale of Future Royalties [Line Items] | |||||
Cash payment under Royalty Agreement | $ 90,000 | ||||
Non-cash interest expense recognized | $ 5,300 | $ 4,600 | $ 15,200 | $ 13,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Net proceeds of issuance of common stock | $ 36,214 | $ 0 | |
Oxford and Silicon Valley Bank [Member] | New Loan and Security Agreement [Member] | 2019 Term Loan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Warrants outstanding to purchase upon exercise of common stock | 23,065 | ||
Warrants exercise price | $ 9.76 | ||
Outstanding warrants | 165,424 | ||
Outstanding warrants, weighted average exercise price | $ 7.25 | ||
Warrants expiration date | 2029-05 | ||
Amortization of discount on debt | $ 200 | ||
Cantor Fitzgerald Agreement [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock, shares issued in period | 3,984,849 | ||
Net proceeds of issuance of common stock | $ 36,200 | ||
Cantor Fitzgerald Agreement [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock offering price | $ 85,000 |